Sunday, October 05, 2008

$SPX Update for 10.05.2008

S&P 500 INDEX - SPX

Monthly chart shows increasing downside momentum. Index is well below all its key moving averages. First downside target at the .618 fib is just below at 1077.60. Given the technical pattern and the fundamentals that the global economy is facing, the .786 and the .886 fib targets are highly likely. No buy signal/pattern evident on this timeframe. The way the pattern is shaping up, we are likely in a wave C that will take us right back to or close to the October 2002 low.

Weekly chart better shows the clear down trend in place. No buy signal/pattern evident on this timeframe.

Daily chart shows the increasing downside momentum, as the global credit crisis intensifies. No buy signal/pattern evident on this timeframe.

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